Letters to Delegates – June 29, 2010
This letter was mailed to all delegates around June 29th, which included this letter from World Relief and Human Care.
Dear Delegate,
God has richly blessed the Lutheran Church – Missouri Synod over its history. But we have not always been good stewards of His blessings. Today we find ourselves in a precarious financial situation and you, as delegates to the convention, will be asked to address this. We at Cross-Focused Leadership for Missouri agree with our Synodical leaders that it’s time for a clear-eyed look at our financial situation, so that we might best consider how to move forward together as a Synod.
First, let us be clear that we are not placing blame for our current situation on any one individual, group, or program. The situation is complex. Even before the current economic downturn, our coffers have suffered due to declining membership, a lack of trust, various questionable decisions, and, we believe, a lack of strategic vision. Our current leadership has tried many tactics – from new programs to drastic measures such as the sale of Synod assets – to fix the problem. The results have been mixed at best.
Here’s what has happened this past decade and what we think it’s time to do:
In 2001, congregations and districts sent Synodical headquarters $28 million to allot for general mission and ministry purposes. By this year, that number had shrunk to just $18 million. In the last few years, the Synod’s net worth has been reduced by millions of dollars. Two years ago, the Synod had a net worth of only $160,000. In early June, Synod executives were told that there were only eight days in operating cash remaining in Synodical coffers.
President Kieschnick, our Synodical President since 2001, attempted to fix the decline by launching a vigorous evangelism program called Ablaze!. Its fundraising arm is called Fan Into Flame. Unfortunately, these programs have not fared as well as hoped. Hoping to raise $100 million by the end of 2009, only $55.2 million has been pledged thus far, according to the LCMS Convention Workbook.
Of this total, only $27.4 million – less than half of the pledged funds – has been received. What’s more, it cost the Synod over $14.3 million to get that cash in hand. That might help explain why, according to the Convention Workbook, less than $7 million has been distributed to participating districts and congregations for their local efforts. Now, it certainly costs money to raise money, but spending so many millions on fundraising made many donors wonder if their monies would be more appreciated elsewhere.
As one seminary professor told the Reporter this month, “Synod’s financial crisis predates the economic recession. People are reluctant to give to Synodical coffers in part because so much is spent on consultants, professional fund-raisers, and overhead.”
Most troubling of all, the millions raised aren’t being used to send ordained missionaries across the world. Despite the massive fundraising effort, missionaries are still expected to raise almost all of their own funds. LCMS World Mission reports that they have only 35 pastors serving as foreign missionaries. And yet there are 60 World Mission staff members who function as overhead back at Synodical headquarters in St. Louis.
Here in the United States, the situation is also disconcerting. In 2001, when Synodical President Gerald Kieschnick took office, membership in our church was 2.54 million. By 2008, the last year for which statistics are available, membership had declined to 2.33 million.
A TALE OF TWO DEPARTMENTS
Some have suggested that restructuring would fix the problems that ail us. Whether or not that’s true, it’s worth comparing how the Synod’s two largest departments have been run over the last decade.
LCMS World Mission, which runs Ablaze!, has been deficit spending for years, most recently because of huge fundraising campaigns that use expensive consultants. The consultants, many of whom are not Lutheran, have cost millions upon millions of dollars, further exacerbating a deteriorating Synodical fiscal picture.
Thankfully, due to the expected generosity of a donor, World Mission hopes to end the year in the black. But such generosity can’t be counted on. Just a few weeks ago, World Mission was operating with a deficit of $1.5 million. According to the Synod’s May monthly operations report, World Mission had spent $2.8 million this fiscal year to raise $3.0 million. Last year, the World Mission deficit was $5.5 million.
The impact that this shortfall has on funding for one of Synod’s formative purposes – world missions – is troubling. For each $1 million deficit, what will be the shortfall in trained and qualified personnel for the important work of spreading the Gospel? What about eight? Ten? Surely that must be a concern. When missionaries must be recalled from the field for lack of support, we must ask what we need to change to make it possible for them to continue their work. Those who are called to be evangelists need to be supported, not tasked with raising funds for the work that should consume all their energies. There must be better ways for missionaries to foster connections with their supporters than serving as part-time development personnel.
But not every program is struggling. LCMS World Relief and Human Care is the Synod’s mercy arm headed by the Rev. Matthew Harrison. The department, which handles its own fundraising, has been in the black every year of Rev. Harrison’s tenure. The department has handled some $100 million in donor funds during that time. He says it’s simple – you just spend less money than you raise. In the face of economic uncertainties of the past year, World Relief and Human Care even reduced their budget to ensure they would remain in the black.
World Relief and Human Care has handled its finances so well, in fact, that the Synod borrows the funds raised by World Relief and Human Care to cover other programs. Sometimes the funds being borrowed, interest free, are as high as $14 million to $18 million.
President Kieschnick has argued that his restructuring plan needs to be passed, eliminating World Relief and Human Care and other program boards, in order to eliminate inefficiency. But Treasurer Tom Kuchta was quoted in the July 2009 Reporter saying restructuring proposals would be immaterial to the Synod’s bottom line.
The declining financial situation over the last decade even led to the sale of the Synod’s KFUO-FM. Without the first payments on the $26 million the Synod hopes to eventually get for that, budgets wouldn’t have been balanced this year. When LCMS members objected to the sale, the Synod assured them that the sale was made “to enable the LCMS to pursue new and exciting opportunities in the area of digital communications that can be used to accomplish our mission.” Except that the money realized this year went straight to covering financial shortfalls, not new digital communications efforts. And no funds have been set aside for digital communications.
Like so many of our other problems, the financial woes we face won’t be fixed by shuffling chairs on the deck. At this convention, you will hear of the financial challenges we face as part of the arguments for restructuring the Synod. But new structures won’t provide the vision and leadership we need, and many of them will set the Lord’s ministry back even further (putting a wide variety of our work from human care to early childhood education to black ministry at risk). Sure, some of the restructuring proposals have merit, but things like having our convention every four years instead of every three don’t really get the job done.
What should we do instead? We believe we should follow the leadership of Rev. Matt Harrison. He and Rev. Herb Mueller are articulating a strategic vision that we believe will address our problems at their core. They would change how we manage our programs and stop spending in excess of revenues. They would rebuild the trust between congregations, districts, and Synod by funding what congregations care most about: Sending pastors to plant churches overseas, training pastors and church workers and mercy for the needy. Rev. Harrison notes that just $2 million a year to each seminary could bring 200 international students to our campuses each year. And the reconciliation plan outlined in It’s Time will help restore unity among us – which is key to arresting membership decline. This combination of management, vision, congregational priorities, and Synodical “inreach” will build on the solid foundation of God’s Word, and make our Synod strong again.
“There is no shortage to what the Lord can provide,” Rev. Harrison says, “The sooner we get back to the basics, (and stop doing some other things), the sooner we will realize it.”
We don’t need to transform the church. We don’t need to make it up as we go along. We have what we need in the apostles’ teaching, the fellowship, the breaking of the bread, and the prayers. (Acts 2:42) What “worked” for our grandfathers’ is sufficient for us always. We don’t need to retool like some corporation whose product has become obsolete. We just need to be the church again. It’s time.
That, when the church bells are ringing,
Many in saving faith may come
Where Christ His message is bringing:
“I know My own, My own know Me.
You, not the world, My face shall see.
My peace I leave with you. Amen”
Sincerely,
Your Friends at Cross-Focused Leadership for Missouri,
Phillip Magness
Lindsay Umayam
Pastor Tom Chryst
Stephen R. Johnson
Pastor Paul Cain
Pastor Paul Schlueter
Jenny Jordan
Pastor Tony Sikora
Pastor Clint Poppe
P.S. Some inaccurate information about the management of World Relief and Human Care was sent to delegates earlier this week. You can find the Board for Human Care’s response at http://www.lcms.org/pages/internal.asp?NavID=17177 (which leads to this PDF). For your convenience we have also attached the letter.
